The Need for Constant Renewal
Great and successful companies have to constantly renew themselves. It is a risky, disruptive and often unpopular process - but it is essential.
I spoke at a business event at Royal Ascot Racecourse this week. Royal Ascot has a superb brand and a loyal customer set. It had a perfectly adequate if rather old-fashioned grandstand. Its leaders decided that they needed a new grandstand. This was a costly and risky exercise. It put the Ascot racecourse out of use for a year. The Royal race meeting was transferred to York. The new grandstand opened in 2007 - on time and on budget -and it is magnificent. 
Royal Ascot could have stayed inside its comfort zone. It could have continued as a successful and popular racecourse. But it wanted to be world class. Instead of satisfying customers it wanted to amaze and delight them. The risk was worth it.
Successful organisations have to constantly guard against complacency. They have to keep finding new ways to add value. IBM took a big risk when it moved out of products and into services. So did Disney with its first theme park. And Virgin with an airline. Longstanding winners like IBM, Disney, Virgin, Nokia, BMW, Sony, Microsoft and Royal Ascot constantly refresh themselves and their offerings. They take bold steps and move out of their comfort zones. The alternative is a slow and certain decline.
Paul Sloane